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After Canada’s investment, Telesat approaches satellite network funding

Ottawa: Telesat announced on Thursday (August 12) that Canada will invest C $ 1.44 billion (US $ 1.2 billion) in the project, followed by a low earth orbit (LEO) aimed at providing high-speed broadband. We have taken a big step towards funding satellite constellations.

Canada has announced that it will finance Ottawa-based satellite communications company Telesat for $ 790 million and purchase a preferred stock of C $ 650 million for a LEO unit called Telesat Lightspeed. Canada will also receive a warrant that can be exchanged for common stock in Telesat.

“We look forward to a dramatic step forward and full funding in the near future,” Telesat CEO Dan Goldberg said in a telephone interview. “It’s coming soon.”

Telesat says it will cost US $ 5 billion (C $ 6.3 billion) to launch a satellite network. The latest investment means it has about $ 4 billion. This includes approximately $ 1.7 billion in cash and an investment of $ 400 million from Quebec.

The remaining funding is under negotiation with French and Canadian export credit agencies BPI and EDC, respectively, and Goldberg said he hopes to end these negotiations soon. Telesat aims to bring satellite networks to work globally in 2024.

The promised investment will take place just three days before Liberal Prime Minister Justin Trudeau is expected to seek an early election. His government has promised to connect to high-speed Internet even in remote Canadian homes by 2030.

Telesat’s 298 LEO satellites operate 36 times closer to the Earth than traditional satellites, reducing the time it takes to send and receive information and enabling fiber-optic speed broadband even in the isolated Far North of Canada.

“All Canadians should have access to affordable high-speed internet,” François Philippe Champagne, Minister of Innovation, said in a statement. “Today we have taken a big step towards that.”

The investment will support 700 jobs in Canada and Telesat promises to spend C $ 1.6 billion over the next 15 years.

According to Goldberg, Telesat will be listed on the Nasdaq sometime this summer and may later be listed on the Toronto exchange. Currently, Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc are major shareholders.

Telesat is competing with rivals, including Elon Musk, CEO of Billionaire’s Tesla. He is getting the so-called Starlink LEO on track at his company SpaceX.

Thales Alenia Space (TAS) is being used to build satellites. TAS is a joint venture between Leonardo of Italy and Thales of France.

After Canada’s investment, Telesat approaches satellite network funding

Source link After Canada’s investment, Telesat approaches satellite network funding

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